Problem # 18

16. Toni, an executive vice-president, terminates her employment with Kerry Oil and Gas arter three years of service. Her account balance in the company profit sharing plan was $21,000 at the time of termination. The plan follows the least generous graduated vesting schedule permitted under PPA 2006, so Toni's vested benefit in the profit sharing plan is $8,400. 17. All of the following are advantages of profit sharing plans to businesses and business owner EXCEPT: a. Allows discretionary contributions. b. Must limit withdrawal flexibility. C. Controls benefit costs. d. May provide legal discrimination in favor of older owner-employees. 18. Which of the following vesting schedules may a top-heavy qualified profit sharing plan use? a. 1 to 5 year graduated. b. 5-year cliff. C. 3 to 7 year graduated. d. 4 to 8 year graduated. 19. Larry, age 55, is employed by BB Trucking Company as a tire repair specialist. He earns $62,000 year and received an allocation of $40,000 to his employer-provided profit sharing plan for the y If BB Trucking does not match employee deferrals, what is the maximum amount Larry can defe his 401(k) plan for the 2020 plan year? a. $17,000. b. $19,500. C. $23,500 d. $26,000